CleanSpark Shares Rise 35% in a Year: Should You Buy, Sell or Hold?

CleanSpark CLSK shares have gained 45.3% in the trailing 12 months, outperforming the Zacks Finance sector’s appreciation of 25.2% and the Zacks Financial - Miscellaneous Services industry’s return of 23.5%.CleanSpark shares have also outperformed industry peers like Globe Life GL, Columbia Financial CLBK and Argo Blockchain ARBK, which have lost 3.7%, 14.8% and 71.3%, respectively, over the same time frame.CLSK’s use of renewable energy and its aggressive expansion have been major growth drivers. It has recently surpassed 10,000 self-mined bitcoins in its U.S. treasury, marking a 236% year-over-year upsurge.CleanSpark has also achieved a 37.5 EH/s (exahashes per second) hash rate with 17.7 J/Th (Joules per Terahash) efficiency. Its fully funded 50 EH/s target is expected in early 2025 through expansions, upgrades and growth initiatives.One Year Performance Image Source: Zacks Investment Research CLSK is prioritizing Bitcoin mining as its core operation, utilizing its expertise and infrastructure for sustained growth. While competitors explore diversification into areas like AI and high-performance computing, CLSK’s commitment to its niche is ensuring faster revenue generation and improved capital efficiency.CleanSpark’s “Infrastructure First” approach focuses on greenfield development and strategic acquisitions, and has enabled CLSK to achieve a diversified and efficient mining portfolio across multiple states, including Georgia, Wyoming, Tennessee, Mississippi and New York.The acquisition of Grid Infrastructure has further expanded CleanSpark’s operations, particularly in Tennessee, with 53 MW of installed capacity and ongoing development of another 80 MW.By establishing mining facilities in geographically diverse locations, CLSK has mitigated the risks associated with extreme weather, energy price volatility and grid instability. The regional diversification has strengthened the company’s operational resilience.CLSK’s 2025 & 2026 Earnings Estimates Remain SteadyThe Zacks Consensus Estimate for CLSK’s 2025 earnings is pegged at 18 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $788.80 million, indicating a year-over-year surge of 108.14%.The Zacks Consensus Estimate for CLSK’s 2026 earnings is pegged at 81 cents per share, unchanged over the past 30 days. The consensus mark for revenues is pegged at $1.08 billion, suggesting year-over-year growth of 36.86%.CLSK beat the Zacks Consensus Estimate in two of the trailing four quarters, and missed twice, the average surprise being 31.63%.Cleanspark, Inc. Price and Consensus  Cleanspark, Inc. price-consensus-chart | Cleanspark, Inc. QuoteFind the latest EPS estimates and surprises on Zacks Earnings Calendar.Volatile Cryptocurrency Market Poses Headwinds for CLSKCleanSpark’s performance is heavily tied to Bitcoin prices, making it highly susceptible to cryptocurrency market volatility. Fluctuations in Bitcoin prices can significantly impact CLSK’s earnings, asset valuation and cash flow, creating challenges in financial stability, especially during extended periods of declining Bitcoin prices. Bitcoin mining requires continuous investment in infrastructure and technology, which can strain CLSK’s cash flows if Bitcoin prices decline.Extreme weather events further expose CleanSpark’s operations to potential disruptions, as seen in the fourth quarter of 2024, when Hurricane Helene made landfall in the Southeastern United States and disrupted CLSK’s operations at its facilities in Georgia. The company suffered a partial outage that reduced revenues by approximately $1 million per day.The industry-wide calls for energy-efficient mining are pushing CLSK to upgrade its fleet, requiring additional investments. The dependence on local power grids and potential regulatory changes regarding cryptocurrency mining also pose headwinds for CleanSpark.CLSK Shares OvervaluedCleanSpark shares are also not so cheap, as suggested by its Value Score of F. In terms of forward 12-month price/sales, CLSK is trading at 3.75X, higher than the industry’s 2.68X, suggesting that the stock is currently overvalued.Price/Sales Ratio (F12M) Image Source: Zacks Investment Research CLSK shares are currently trading below the 50-day and 200-day moving averages, indicating a bearish trend.CLSK Trades Below 50-Day & 200-Day SMA Image Source: Zacks Investment Research ConclusionCleanSpark is benefiting from robust growth drivers and acquisitions. However, its exposure to Bitcoin volatility and valuation is concerning.The company’s Growth Score of F makes the score unattractive for growth-oriented investors.Cleanspark carries a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Financial (CLBK): Free Stock Analysis Report Globe Life Inc. (GL): Free Stock Analysis Report Cleanspark, Inc. (CLSK): Free Stock Analysis Report Argo Blockchain PLC Sponsored ADR (ARBK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks